BANC - Banc of California: Consider The Post-Merger Preferred Stock For Income

2024-02-07 07:00:00 ET

Summary

• Banc of California completed a merger with PacWest Bancorp, becoming the third-largest bank headquartered in California. The merger included the sale of $1.9 billion in assets and a $400 equity infusion.
• The Preferred was originally issued by PacWest. Both the Banc of California and the preferred stock are reviewed. Its desirability as an investment is compared to alternate preferred stocks.
• The preferred stock has a call date of 9/1/27 and can be called early if Tier 1 capital rules change.
• My comfort level is strong enough, with the yield and potential YTC, to rate the BANC-F as a Buy.

Introduction

Occasionally I find securities that are new and have yet to be covered on Seeking Alpha that I think other income investors might be interested in. Upon Banc of California 's ( BANC ) merger and absorption of Pacific Western Bank, the PacWest issued preferred started trading as the Banc of California, Inc. DEPOSITARY SHARE ( BANC.PR.F )....

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